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I just wonder if you are using the 'path tool' correctly...

To make the 'selection' that you described, I used the rectangular tool, and drew a simple box using the 'path tool'. I then drew a second box inside the first box using the 'subtract from path option'. I saved my path and clicked the layer in the paths palette and the selection was made as shown in my example.

Is this how you are doing it James?  [confused]